Eastman Chemical (EMN) PT Raised to $150 at Jefferies After Asset Sale Results in Accelerated Debt Reduction

Jefferies analyst Laurence Alexander raised the price target on Eastman Chemical (NYSE: EMN) to $150.00 (from $138.00) after the company announced the sale of the rubber additives business for $800m or ~8x 2021 EBITDA.

The analyst reiterated a Hold rating, stating "We adjust our 2021 estimates to account for the lost EBITDA, but an increase in debt reduction and share repurchases should offset all dilution by 2022. The remaining businesses will likely rebound with the broader economy, and in the near term at least robust olefin pricing likely continues to support Chemical Intermediates."

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